SBI Mutual Fund Gets RBI Nod to Acquire 9.99% Stake in IndusInd Bank

12 Oct 2023 , 11:40 AM

The State Bank of India’s mutual funds division, SBI Mutual Fund (SBI MF), received authorization from the Reserve Bank of India (RBI) on October 11 to purchase 9.99% of the paid-up share capital in private lender IndusInd Bank, according to a regulatory filing.

‘The approval has been granted with reference to the application made by SBI MF to RBI,’ IndusInd Bank said in a statement to the stock exchanges. The corporation will be able to possess 9.99% of the voting rights in the bank thanks to this transaction.

‘SBI MF has been advised by RBI to acquire the aforesaid major shareholding in the bank within a period of one year i.e. by October 10, 2024’, the exchange filing stated. 

Also instructed to make sure that its total stake in the bank ‘does not exceed 9.99 percent of the paid-up share capital or voting rights’ is the mutual fund organization.

The RBI approved the purchase of a 9.99% share in HDFC Bank by SBI Funds Management (SBIFML), a joint venture between State Bank of India and France’s AMUNDI, earlier in May and had advised the company to complete the transaction within six months.

In the meantime, IndusInd Bank reported outstanding financial results for the first quarter of fiscal year 2023–2024, with its net profit increasing to 2,124 crore, or 32% more than the 1,603.29 crore recorded for the quarter ending in June 2022. Net interest income for the lender increased to 4,867.11 crore, up 17.98 percent from the 4,125.20 crore reported in the same period last year.

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